The U.S. Securities and Exchange Commission ( SEC ) is considering a new listing standard to expedite the approval processes for spot cryptocurrency ETFs, generating considerable excitement in the crypto sector. Aligning with President Donald Trump’s vision of making the U.S. a “crypto capital,” the SEC appears to be lining up ETFs based on altcoins such as Solana $154 , XRP, and Dogecoin $0.173181 after Bitcoin $109,273 and Ethereum $2,657 . Experts from Bloomberg suggest a 95% probability for the approval of Solana, XRP, and Litecoin ETFs. The draft regulation is expected to be announced this month and to come into effect by September or October.
SEC Discusses Accelerating the New Framework
The SEC and major exchanges are engaged in discussions about replacing the 19b-4 applications, which can take up to 240 days, with a listing standard based on predefined criteria. By standardizing metrics such as market value, decentralization level, and wallet distribution, any new cryptocurrency ETF meeting the criteria can be directly listed by an exchange without additional SEC application. Maintaining protective mechanisms is a high priority for the regulatory body, as constructive dialogues are reportedly progressing well among stakeholders.
The new approach relies on the SEC’s sequential approval strategy encompassing “Bitcoin first, then Ethereum, followed by a mixed basket and individual altcoins.” Although Grayscale’s fund approval, consisting mostly of Bitcoin and Ethereum, was temporarily suspended last week due to a full panel review, it underscores the SEC’s commitment to the phased plan. Innovative models, like Rex-Osprey’s Solana ETF with staking income taxations, are benefitting from this increased flexibility.
Growth Expectations in the Altcoin-Focused ETF Market Persist
The diversity of presented ETF ideas is increasing rapidly. Issuers like 21Shares and Grayscale are preparing for the forthcoming wave of approvals with a focus on altcoins such as Solana, XRP, Dogecoin, Cardano $0.610825 , and Polkadot . The SEC’s supportive stance, combined with a unified standard, is anticipated to make capital flows more predictable under a consolidated framework.
SEC – Altcoin ETF Expectations Bloomberg Intelligence analyst James Seyffart expects a “floodgate effect” to occur when the final framework is enacted in the fall, leading to a stream of approvals for ETFs based on various assets. President Trump’s pro-innovation stance and the crypto-friendly nature of new SEC Chairman Paul Atkins are bolstering expectations. The competitive landscape is projected to intensify with the introduction of low-cost, transparent, and tax-advantageous products for investors.
